Credit Card Debt

Credit Card Debt and Personal Bankruptcy 

From Fairfield to Hercules and Vacaville, we hear about credit card debt every day.

How it all began – the story of credit card solicitations, promotions and gimmicks.

One day in the mail you received an invitation from a bank to accept a pre-approved credit card. It seemed flattering – so without much thought you completed the application and within a few weeks another envelope arrived – with your first Visa or MasterCard.

What you probably didn’t realize was that the bank makes money when you used the card, especially if you didn’t pay the balance in full. So even when you only made small payments, they encouraged you to spend more.

Then another application arrived in the mail – from your favorite department store. They had an incentive that might help you save money. After that, another invitation from a Bank – with an even better promotional to attract your attention.

If you are like most Americans, you had more than one credit card before you were 21 years old.

Credit card debt is a problem for a staggering number of American consumers. Consider these facts:

  • Visa reported 261 million U.S. cardholders as of Sept. 30, 2011(Source: Visa)
  • MasterCard reported  176 million U.S. cardholders at yearend 2010 (Source: MasterCard)
  • The average credit cardholder has 3.5 credit cards (Source Federal Reserve Bank of Boston, January 2010)
  • Half of college undergraduates had four or more credit cards in 2008. That’s up from 43 percent in 2004 and just 32 percent in 2000.  (Source: Sallie Mae, “How Undergraduate Students Use Credit Cards,” April 2009)

Personal Bankruptcy rates in the San Francisco Bay area are directly impacted by the credit card companies who persist in their efforts to attract new customers. If you have an overwhelming amount of personal debt related to the balances on your credit cards, you can call the Dowe Law firm for a free, confidential consultation about your options.

Your new life can start with a frank conversation about your debts, your income and your choices. We’re here to help you sort through your options – call us today at 510-233-7700 for a free consultation.

One last word about credit card debt – the companies that want you to borrow from them are attempting to make money by encouraging you to use your credit. You must understand that bankruptcy and debt counseling can get you out of trouble but only your good judgment will keep you out of trouble. Remember – our personal, confidential consultation is free – call 510-233-7700 today if you need help.